Personal Finance & Money Asked on October 29, 2020
To see the historical custodial fees charged by depository banks on ADRs, I usually go to the depositary banks’ websites where, if lucky, I am able to find the historical fee information. Today, I read the SEC’s Investor Bulletin: American Depositary Receipts, which says:
A common practice for collection of the custody fee is for the ADR depositary bank to subtract the amount of the fee from the gross dividends paid by the bank to ADR holders. Typically, the Depository Trust Company, (DTC) will announce both the gross dividend rate and the net dividend rate after deduction of the ADR custody fee. The ADR depositary banks pay DTC the net dividend, and DTC allocates the net dividend to its users. […]
This promises to save me a lot of time, if the announcements are central and public. Does the DTC publicly announce these gross and net dividends from which I can calculate ADR custodial fees? If so, where does it announce the information?
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